Metalworking
Last updated: April 2008

Industry Codes:
  • NAICS – 333513 Machine Tool (Metal Forming Types) Manufacturing
  • SIC – 354 Machinery Tools, Metal Cutting Types

Overview

Stamping equipment comes in all shapes, sizes, and capacities. Smaller presses are commonly found in metal fabricating operations and are an integral part of manufacturing a wide variety of products. As the parts get larger and the metal thicker, stamping presses get larger. Many of the largest press lines in operations today support the automotive industry. As with all machine tools, the control systems have become more sophisticated to afford manufacturers complete system integration for increased production, reduced downtime, and increased efficiency.

Industry Condition – Fair


Commodity Tracker

Secondary Market

Overview

Large Capacity (800+ Ton) – The demand for large stamping equipment has been affected by the poor condition of the automotive industry. With the Big 3 domestic producers shuttering plants, more closures to come, and major suppliers declaring bankruptcy, there is a large quantity of big presses and press lines on the market. Very late model high production presses and press lines are the most salable and even with this equipment it can take more than one year to complete a transaction. Very few large presses are being purgeantaresd by dealers on speculation due to market constraints and the high cost of removal. When large presses are sold on speculation, dealers are often afforded an extended period of free rent (up to one year) and the right of abandonment.

Mid-range Capacity (200 to 800 ton) – Presses less than 10-years old are most desirable, but as you reach the higher end of the capacity range, there is no guarantee that a purgeantaresr can be readily identified.

Smaller Capacity (< 200 ton) – Smaller, high-speed presses continue to be in demand. This equipment has been somewhat insulated from the downturn in the automotive industry because it has broader application in a variety of industries. These presses are also easier to move and occupy less floor space. However, as a general rule, older punch presses have limited or no value.

Used Equipment Values

Large Capacity – Fair to Poor for older presses
  • Supply of used equipment – Increasing
  • Demand for used equipment – Decreasing

Midrange Capacity – Fair
  • Supply of used equipment – Increasing
  • Demand for used equipment – Decreasing

Smaller Capacity –Average
  • Supply of used equipment – Increasing
  • Demand for used equipment – Stable

Liquidation Monitor

  • Recent bankruptcy filings
    • Solar Stamping and Manufacturing filed on August 29, 2007; converted to Chapter 7 liquidation on November 28, 2007
    • Union Stamping filed on October 3, 2006

Secondary Market Value Indicators

AccuVal Machinery Index Methodology
Trend Lines
Methodology of Statistical Analysis

In every industry segment measured by AccuVal, data regarding transactions of similar assets is collected on a global basis, organized by their key attributes, and analyzed to identify trends in the marketplace. These transactions are generated by tracking thousands of sales annually which generate hundreds of thousands of transactions. This information becomes part of the world's largest database of transaction information and is analyzed using a proprietary asset management platform called "Asset Intelligence."

To create the trend line, transactions are grouped by asset type. The sales are further consolidated within asset types based on the frequency of occurrence within a range of sales prices. This refined group of more homogenous sales determines the basket of transactions used to define market trends for a specific asset type. These sales are the most common assets in that category and are within the highest frequency of sales prices occurring in the asset class being studied.

These items are further studied and categorized based on their specific attributes. These attributes may include things such as age and other key factors impacting the specification of an asset such as the weight capacity of a lift truck or the tonnage of a stamping press.

These sales are then run through a regression model to normalize the sales price based on age and the other attributes considered in the data set. Regression analysis in its simplest form finds the best fit for the relationship of all of the variables considered. The standard errors of the regression coefficients are used to then normalize the sales prices and account for differences in the variables or specifications of each asset. The normalized sales prices occurring within each quarter are then converted to a quarterly index based on calendar quarters.

Once the normalized sales price is obtained for each calendar quarter, this information is plotted on a graph over time. A three-period moving average is computed from these data points to reduce the impact of variances in the basket of goods sold in each quarter.

Lastly, the data over the last four periods is further analyzed and used to plot the most current trend line. This analysis produces the estimates of the anticipated percentage of change in value for the asset category in the next two periods.




Factors Influencing Value & Marketability

  • Age, bolster size, capacity, stroke, productivity (Strokes Per Minute), controls
  • Installation type
  • Building characteristics influencing de-installation

Industry Experience

Valuation Monitor

AccuVal routinely provides appraisal, consulting and asset management services to all segments of the Metalworking industry, including Stamping, Metal Fabricating and Production Machining. View industries serviced >>

Representative Clients Our Associates Have Served

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Success Stories

  • Press Lines Totaling Hundreds of Millions of Dollars Pledged as Collateral for Asset Based Loans Using AccuVal Appraisals
  • Supported Noteworthy Acquisitions with Financial Reporting Expertise
  • Assisted in the Implementation of Asset Optimization Strategies
  • Executed Major Dispositions of Stamping Plants
  • View all Success Stories